Investment precious metals will be GST-exempted — Association

PETALING JAYA: The investment precious metals ( IPMs), which comprised bullion gold, silver and platinum, will be under the Goods and Services Tax (GST) exempt supply, says Malaysia Gold Association.

Its new president, Abd Razak Mohd A. Kadir, said the IPMs, especially gold bullion which were extended the GST-exempt supply, were those accredited with the London Bullion Market Association (LMBA).

“In Malaysia, the market trading value for the IPMs is about RM10 billion annually, of which 90 per cent are LMBA-accredited bullion and only about ten per cent local minted,” he said at the media briefing after the inaugural annual general meeting here today.

However, only 10 per cent of gold trading in Malaysia is in IPM form while the 90 per cent were kept in the form of jewellery which is subjected to six per cent GST, from April 1.

MGA is a new association formed to represent a broad spectrum of organisations and associations related to precious metals industry including mining, refining, minting, trading, jewellery smiths, pawn-broking, assaying, logistics related to the industry, finance and research institute.

MGA secretary, Datuk Louis Ng Chun Hau, said the association has a few dialogue sessions with the government and the Royal Malaysian Customs Department on the GST issues involving the industry.

He said among the immediate activities for the association would be to follow up on the GST issues, especially to get the localminted bullion to be under GSTexempt supply and to propose to the government a GST model for jewellery.

“For jewellery, we hope the government would consider a model similar to Turkey whereby the GST is only imposed on valueadded like labour cost, design and so on but not on the value of gold.

“Turkey is one of the leading countries with matured gold trading industry that we should exemplify,” he said.

On gold market outlook after the implementation of GST, Ng said he expected it to slow down at least for the first six months as consumers adopted a wait-and-see attitude. — Bernama

The Lord Mayor said Melbourne had much to offer with its reputation as being “the world’s most liveable city; friendliest city; most admired knowledge city; and, the ultimate sporting city.”

Only 10 per cent of gold trading in Malaysia is in IPM form while the 90 per cent were kept in the form of jewellery which is subjected to six per cent GST, from April 1.